Slot Transaction, E-190 Sale, Crew Base Closures, & Realignment Designed to Shop the Company for Sal

[LD3]

If SWA made a commitment to serve CLT, the airport would fall all over themselves to either find gates, or build them in short order. Way back when SWA made its first inroads into the northeast, BWI extended a concourse to make room for SWA. The construction (24/7) was completed within about 90 days.

Highly doubt it....SW has stated their interest in CLT, have seen no one falling over themselves..Old Post

 

[FlyUs]

This is just a small example, but from DFW our PHX flights are very strong.
Many with connecting pax out of PHX. This to me seems positive seeing as DFW is an AA stronghold where pax could just go non-stop to most of the cities served out of PHX.

Of course US can compete with another legacy carrier. It's WN and and now B6 in the NE that's causing US to run and hide

 

[nycbusdriver]

Highly doubt it....SW has stated their interest in CLT, have seen no one falling over themselves..Old Post

"Interest" is a very different thing from "commitment."

 

[Travelpro72]

Anyone that thinks CLT wouldn't roll out the red carpet if WN announced their "commitment" to coming is sadly mistaken. You've GOT to be kidding me. Sure CLT doesn't wanna lose any US service but they also aren't stupid and know exactly what bringing WN into the fold would do for the airport.

 

[back2CLT]

This was true when CLT was consistently in the top 3 most expensive airports (fare wise) for several years in a row being a hub for the pre-merged US Airways. The situation has changed. Fares have come down dramatically, the number of destinations have increased. At this point, city government/chamber of commerce types are quite happy with the level of service. They certainly wouldn't try and block a SWA presence, but they aren't going to bend over backwards as some indicated. The hub status and number of non-stops is a KEY selling point for the city's economic development campaigns, and they aren't going to actively try to bring in any competition that would undermine the incumbent.

 

[Travelpro72]

IF so.....FOOLISH thinking indeed.

 

[ClueByFour]

They have the lowest cost system wide because they traditionally flew to airports with low costs and where they were able to make quick turns allowing them to spread the fixed costs of the planes among a greater number of flights, which reduces CASM. Now go reread, what I wrote. They are entering LGA and BOS which are the anti-thesis of the types of environments that have helped keep low costs.

They only need to keep the lowest costs at a particular airport relative to their competition. They can then set the "yield bar."

Re-reading what you wrote does not make it any less nonsensical.

Your logic is goes something like, "I've stayed sober because I don't drink alcohol, but now that I am drinking, I will be the most sober person out there" Yes, I can read annual reports of all airlines, and spout historical trends, but I'm also don't believe in regurgitating so called truths, when current actions indicate an exteme deviation from historical behavior.

Pop quiz: which domestic airline is (in real terms) either making money or losing less money?

I actually was a LUV shareholder from about mid-2002 to mid-2005. The stock has NEVER hit my buy price in 2002 over the last 7+ years. This backs into my point about what I think is driving SW's current strategy. They need to find growth, consistent mediocre profits aren't cutting it. A crappy-to-non-existent dividend isn't exciting me when I'm seeing annual depreciation in my holdings. Therefore, they are looking to make splashes in the big markets where they think their name alone will carry them in picking up enough market share to make a profit, never mind at a reduced margin due to costs. But hey, if you think its a great time to buy LUV, be my guest. You can sell them back to me at loss to cover my short.

You did not answer my question: the answer, of course, is that the HP shareholder got wiped out.

As a rule, I don't buy airline stocks. It's gambling, not an investment. I do, however, find a statement of "consistent mediocre profits aren't cutting it" to be entirely laughable. Better that they wiped out, which is true of every existing legacy airline shareholder since 1990 with the exception of those holding AA stock. Let me know when Dougie starts turning so much as a "consistent mediocre profit" and does it without the rape and pillage of employees/bondholers/lessors with bankruptcy.

 

[ClueByFour]

This was true when CLT was consistently in the top 3 most expensive airports (fare wise) for several years in a row being a hub for the pre-merged US Airways. The situation has changed. Fares have come down dramatically,

Uhh, if you exclude smaller airports, it's #2 (trailing only CVG). IF you include the TRI and GSPs of the world, it's #7. To suggest that CLT's airfares have come down in any meaningful way is laughable.

the number of destinations have increased. At this point, city government/chamber of commerce types are quite happy with the level of service. They certainly wouldn't try and block a SWA presence, but they aren't going to bend over backwards as some indicated. The hub status and number of non-stops is a KEY selling point for the city's economic development campaigns, and they aren't going to actively try to bring in any competition that would undermine the incumbent.

Fortunately, if LUV wants gates at CLT, they will get them. If they don't, Jerry Orr loses all his federal funding and the el-cheapo landing fees and such at CLT come to a screaming halt. The yocals who think a hub is the next best thing to sliced bread won't have a say in it. But they will eat up the cheaper fares.

 

[700UW]

Um no Jerry Orr wont, VX cant get gates at ORD and the feds have done nothing to the Airport Authority.

 

[smoot4208]

Fortunately, if LUV wants gates at CLT, they will get them. If they don't, Jerry Orr loses all his federal funding and the el-cheapo landing fees and such at CLT come to a screaming halt. The yocals who think a hub is the next best thing to sliced bread won't have a say in it. But they will eat up the cheaper fares.
[/quote]

Actually Jerry Ore will do just as much as possible to keep WN OUT of CLT. He knows whats good for Charlotte. US is committed to Charlotte as it has low fees and minimal competition. Jerry Ore is smart enough to realize that Charlotte is not a WN type of city meaning that if they came here it would be a minimal presence(as Charlotte is mainly connecting traffic and not O&D) so WN would most likely only serve at best, BWI, MDW, MCO, TPA, and LAS. With less than 20 flights a day, he would not be wise to piss off US. 700UW is correct in stating that the Feds won't due anything. The only rule I believe is that they have to guarantee them gate space for one flight. Ore does not and will NOT waive fees for them.

Why do you think no LCC has chosen CVG as a destination. The airport manager would not waive fees for low cost carriers to come in. It was a very smart move (maybe that will change though soon) Anyways in the past, the airport mgr showed commitment to DL and DL committed to CVG.

 

[ClueByFour]

You guys need to go back and understand two things:

1. What comes along with the feds allowing a PFC charge.

2. What CLT specifically claimed in their PFC application (in 2004 and revised in 2007).

#2 included the D and E expansions, with a stated goal of ensuring capacity for airline competition and new entrants. If they don't live up to that, the feds can blow about a $600 million dollar hole in the CLT budget from the present day to 2018.

If the feds say jump, Orr says "how high." Bank it boys--the good ole' boy network ain't gonna keep WN out of CLT if WN decides it wants in. He could have, but taking the PFC cut that avenue off at the knees.

 

[flyingcat]

Why do you think no LCC has chosen CVG as a destination. The airport manager would not waive fees for low cost carriers to come in.

The airport manager cannot lower fees, Kenton county airport board rules state that any concession offered must apply to all tenants. With the current rules in effect DL has locked competition out as the reduced activity has increased emplanement costs consdierably. On the other hand unless they go into bankruptcy again they still are on the lamb for the bonds. Kind of kills the conspiracy theory that they were planing to merge with NW all along. If this was the case they would have killed CVG in bankruptcy.

I am not sure if CLT has the same rules but don't fall for the mantra that airports are totally loyal. They like hub status but love to add more airlines that bring more people to the airport and more revenue to such top earners as parking.

Orr is only loyal to maximizing revenue. If SW wanted in I'm sure he would find room easily with city controlled gate just like B6 uses.

 

[nycbusdriver]

The airport manager cannot lower fees, Kenton county airport board rules state that any concession offered must apply to all tenants.

You mean the county airport board has ordered that there be a level playing field?

What a concept!

 

[john john]

The airport manager cannot lower fees, Kenton county airport board rules state that any concession offered must apply to all tenants.

They will just pay for an advertising campaigns
And deals on facilities
BWI comes to mind along with a lot of cities that startups and WN cherry pick

 

[WCT]

Oh my gosh, WN entering the CLT market???!
Who cares. Just like PHL, they will never OWN the market share!
We, (HP) have done pretty well in PHX all these years, and Southwest hasn't run US out yet!
WE are still the Hometown Airline, PHX and CLT, and obviously are HERE TO STAY!!!
US Airways will survive.